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Consent (1)

The Indian Contract Act, 1872 defines consent as the voluntary acknowledgment of a proposal by one person to another, with free consent being unaffected by coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats or unlawful acts to force agreement, while undue influence occurs when one party dominates the will of another for unfair advantage. Fraud and misrepresentation involve false statements that deceive or induce another party into a contract, and mistakes can render agreements void if both parties are mistaken about essential facts.

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5 views10 pages

Consent (1)

The Indian Contract Act, 1872 defines consent as the voluntary acknowledgment of a proposal by one person to another, with free consent being unaffected by coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats or unlawful acts to force agreement, while undue influence occurs when one party dominates the will of another for unfair advantage. Fraud and misrepresentation involve false statements that deceive or induce another party into a contract, and mistakes can render agreements void if both parties are mistaken about essential facts.

Uploaded by

khakholiagajal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consent

Indian Contract Act, 1872


• Consent exists when one person voluntarily
acknowledges the proposal or desire of
another person.
• According to Section 13, “Two or more
persons are said to be in consent when they
agree upon the same thing in the same sense
(consensus-ad-idem)”. Free consent means
consent given to an individual for the
performance of an act on his will.
• Free consent under the Indian Contract Act has
been defined in Section 14. The section says that
consent is considered free consent when it is not
caused or affected by the following:
• Coercion
• Undue influence
• Fraud
• Misrepresentation
• Mistake
Definition of Coercion (Section 15)

• Coercion is the committing or threatening to commit, any act


forbidden by the Indian Penal Code or the unlawful detaining,
or threatening to detain, any property, to the prejudice of any
person whatever, with the intention of causing any person to
enter into an agreement.

Illustration
• ‘B’ gives his car, causing his agreement to be coerced. ‘A’
threatens to hurt ‘B’ if he doesn’t give his son, ‘C’ a large sum
of money. ‘B’ believes the threat and gives ‘C’ the money. This
agreement is believed to be coerced.
•
Definition of Undue Influence (Section 16)
• A contract is said to be induced by ‘undue influence’ where the relations
subsisting between the parties are such that one of the parties is in a
position to dominate the will of the other and uses that position to obtain
an unfair advantage over the other. A contract is said to be induced by
‘undue influence’ where the relations subsisting between the parties are
such that one of the parties is in a position to dominate the will of the
other and uses that position to obtain an unfair advantage over the other.”
• In particular and without prejudice to the generality of the foregoing
principle, a person is deemed to be in a position to dominate the will of
another—
• (a) where he holds a real or apparent authority over the other, or where
he stands in a fiduciary relation to the other; or
• (b) where he makes a contract with a person whose mental capacity is
temporarily or permanently affected by reason of age, illness, or mental or
bodily distress.
• (3) Where a person who is in a position to dominate the will
of another, enters into a contract with him, and the
transaction appears, on the face of it or on the evidence
adduced, to be unconscionable, the burden of proving that
such contract was not induced by undue influence shall be
upon the person in a position to dominate the will of the
other. Nothing in the sub-section shall affect the provisions of
section 111 of the Indian Evidence Act, 1872.
• Illustration James, an old man suffering from cancer, is
induced by Daniel, his doctor, to pay a huge amount for his
treatment. James transfers the money to Daniel’s account.
Here, Daniel employs undue influence.
Fraud under the Indian Contracts Act

• Section 17 of the Indian Contract Act, includes


to essentials to prove that an act is a fraud;
• A person should make a false statement
having the knowledge that the facts are false.
• There should be a wrongful intention to
deceive the other party.
• Mere silence as to facts likely to affect the
willingness of a person to enter into a contract
is not a fraud.
•
• “Fraud is proved when it is shown that a false
representation is being made-
• Knowingly
• Without belief in its truth
• Recklessly careless whether it be true or false.
Misrepresentation under the Indian Contracts Act

• Misrepresentation means misstatement of a fact material to the contract.


• Misrepresentation is defined in Section 18 of The Indian Contract Act. A
misrepresentation is an untrue or false statement of law or fact made by
one party, which induces the other party to enter into an agreement or
contract.
• Misrepresentation is false statements of truth that affect another party’s
decision related to a contract.
• Misrepresentation can void a contract and in some cases allow the other
party to seek damages.
• Misrepresentation is a basis for contract breach for transactions, no
matter the size.
• Misrepresentation applies only to statements of facts, not to opinions or
predictions.
Mistake under the Indian Contracts Act

• Mistake is not defined in the Indian Contract Act.


Sections 20, 21 and 22 deal with the concept of mistake.
A mistake is said to occur when parties intend to do one
thing by error to do something. Where both parties to an
agreement are under a mistake as to a matter of fact
essential to the agreement, the agreement is void.
• Section 20 will come into play:
• When both parties to an agreement are mistaken
• Their mistake is as to matter of fact
• The fact about which they are mistaken is essential to
the agreement
•

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